Maggie Wu x Block Goddess Party: Slow bulls can make people pay more attention to long-term value, a bull market can be expected.
By Krypital Group
Block ’s Second Anniversary and Goddess Party hosted by BLOCK GLOBAL and Block Technology on March 7th was successfully launched in its online community. Maggie Wu, the Co-Founder and CEO at Block Technology, shared her insights and thoughts under the topic of the Dawn of Crypto Bull Market. The content covered is based on these following three aspects:
1. Compared with the previous two halving, what are the similarities and differences of this the halving of this time?
2. If the blockchain is to enter a four-year bull market, what obstacles do you think the industry needs to overcome?
3. Do you think the halving bull market of 2020 will come? If so, how long will this round of bull market last?
The discussion is full of solid sharing, now let us take a look at it and review the exciting moments together!
Hey guys,
My name is Maggie Wu, the CEO and Co-Founder of Krypital Group. First of all, I would like to thank Block Technology for this invitation, so that I could have the opportunity to share with you some of my thoughts on the opening of a new bull market.
“History does not repeat, but it is always surprisingly similar.”
Looking at the historical trend of Bitcoin price, we will find that the market will usher in a wave of price increase after each halving of the market. Because of this, all Bitcoin investors are beginning to have great expectations for the upcoming halving, which will only happen once every four years.
As of now, Bitcoin has been halved twice, in November 2012 and July 2016. The Bitcoin block reward has been reduced from the original 50 BTC to the current 12.5 BTC, which has gained 7976% and 2902% price increases, respectively. It is expected that the third halving of Bitcoin will occur after the block height reaches 630,000 (about May 2020), and the block reward after this halving will be reduced to 6.25 BTC. From the S & F index, it can be known that the halving of Bitcoin’s production capacity will not only increase the cost of mining tokens output, but also reduce the scale of mining tokens flowing into the market, which will directly lead to a reduction in market supply. Today, the penetration rate of Bitcoin is still expanding, and the market maintains strong demand. When demand exceeds supply, it will most likely promote the growth of Bitcoin’s market value.
Now that Bitcoin has entered its 11th year, the relevant infrastructure construction of the current blockchain and cryptocurrency markets has begun to take shape. No matter ordinary investors or institutional investors, they can find the corresponding service providers to provide services for themselves. This environment is not available in the previous bull markets. Therefore, the duration of this bull market will probably be longer.
In my opinion, to truly usher in the big bull market, the blockchain industry still needs to continue to break through the following points:
- The completeness of the infrastructure;
- The degree of support of main funds;
- Elimination of global liquidity risks;
- Support for innovation in the global financial sector;
From a macro perspective, the global financial turmoil is brewing, but at the same time, risks and opportunities also exist in the market. You can learn from the recent news that the new coronavirus has a huge impact on the global economy. This is a rare emergency rate cut by the Federal Reserve after the 2008 economic crisis. Immediately afterwards, the central banks of many countries began to print money, resulting in the continuous depreciation of currencies. But despite this, the benefits of doing so have reduced the liquidity risk factor accordingly.
Coinbase’s CEO Brian said in a recent tweet that “declining stock markets and interest rate cuts could increase cryptocurrency growth this year.” More and more investors are turning their attention to digital assets. Because of the increase in market demand and the influx of more liquid funds into the market, we can foresee that the overall market value of digital currencies is about to usher in a breaking point.
Today’s international financial system is undergoing a paradigm shift. The traditional banking system will gradually decline and disintegrate, and the value and shape of money will be redefined. In the long run, a blockchain-based value system may be the foundation for future financial system reconstruction.
At present, the world has given great recognition to the function, application and value system based on blockchain. The blockchain industry is ushering in huge development opportunities. Whether at the national level or traditional top companies are actively participating in the establishment of blockchain infrastructure. For example, Libra launched by Facebook, the Marshall Islands government selected Alogrand as a technology partner to issue the national digital currency CBDC, the Central Bank of India lifted the cryptocurrency transaction ban, and China is actively developing a new type of cryptocurrency DECP. All this means that more value will be issued based on blockchain technology, and it will also further expand the market value of encrypted digital assets.
From the micro level, as I said earlier, the halving of Bitcoin once every four years is coming, and the market demand on the macro side has been increasing, which is one of the main reasons for the coming of the bull market. In the past two halving of Bitcoin supply, the cryptocurrency market has exploded, and I believe the third halving is no exception. Because all traders will reach a consensus with the main funds at some point based on past historical data and expectations for the future. So the demand will become stronger, and the supply will become tighter. This imbalance between supply and demand will directly affect the price trend of Bitcoin. From a technical point of view, the trend of Bitcoin in the past 10 years is quite perfect. There should be no investment product that has a greater return than the investment income of Bitcoin. This is also like a textbook example of K-line. By analyzing the trend of Bitcoin’s K-line, we can also see that the challenge that occurs every four years perfectly matches the halving market and the K-line. This also gave some support to the upcoming bull market from the perspective of the market.
Of course, we have been talking about the big bull market cycle. From the perspective of the small cycle, the conversion of bears and bulls will still be frequent, and there may be an alternation every three months. I believe that with the continuous improvement of the industry infrastructure, the admission of more main funds, the growth of liquidity, and a series of reforms in the traditional monetary and financial system, the bull market in 2020 may be late, but it will definitely come. In fact, I personally do not want the big bull market to come too fast. The short-lived bull market often leaves hidden dangers. Slow bulls are better than big ups and downs. Slow bulls can make practitioners in the industry pay more attention to long-term value, which is beneficial to the industry’s development. All in all, a bull market can be expected.
Finally, thank you all for your time and wish each goddess a happy holiday!
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